HMRC's most recent newsletter includes reminders about the new annual and lifetime allowances. Please note that although the annual allowance does not drop from £50,000 to £40,000 until 6 April 2014, it could catch contributions and accrual from 7 April 2013, depending on when the scheme's pension input period commences. This means that more schemes are likely to have issues with members exceeding the annual allowance and "scheme pays" (where the member can require the scheme to pay his tax bill subject to an adjustment of his future benefits) could become more of an issue.
Newsletter 57 can be found here.
HMRC has amended its guidance on pensions liberation aimed at members rather than administrators or trustees. There is no new guidance on what to do when faced with a suspicious transfer request. HMRC confirms that it is for the trustees or administrators to carry out due diligence and follow the guidance and checklist in the Regulator's recent guidance to satisfy themselves prior to making any transfer that it will be a recognised transfer. HMRC says that concerns should be reported to "Action Fraud" and the member should be warned of the tax consequences of pensions liberation.
Click here for the Regulator's guidance on pensions liberation.
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